Facebook ads: ROI and conversions increase in Q3

Analysis of Facebook advertising performance in Q3 has found that the platform has improved across numerous key performance indicators (KPIs).

It comes off the back of a strong performance in Q2, when there were also improvements across the board compared to Q1.

The data from Kenshoo shows that CPC has dropped 9% in Q3 compared to Q2, while revenue per click (RPC) has increased 1.73x.

Similarly, the average conversion rate has increased 2.36x while revenue is up 2.16x.

It’s important to note that these results only reflect brands using the Kenshoo Social platform, so are not representative of the entire Facebook ad industry.

However it’s still a useful indicator of the improved performance that brands are seeing from Facebook ads as they continue to refine and optimise their campaigns.

Other key stats include:

Ad impressions are up 13%.

Click volume has increased 14.4%.

Revenue per click is up 1.76x.

Return on investment increased 3.04x.

According to Kenshoo there are several factors in play that have caused the increase in KPIs.

Firstly, Facebook has continued to simplify and improve its ad products, delivering more high performance news feed inventory as well as improved targeting capabilities and larger, more engaging formats.

Furthermore, advertisers are becoming more experienced in using Facebook ads and are promoting their most relevant products, customising ads and tracking each touch point in the customer journey across various digital channels.

The study includes analysis of KPIs spanning more than 85 billion ad impressions across a representative sample of advertisers and agencies using Kenshoo.

Cadbury case study

Mondelez discussed the strong results that it saw from Facebook ads at our Festival of Marketing conference last week.

Comments (1)

A very good analysis. The first time I started to believe that FB ad actually works is about two years ago when I bought some tickets for an exhibition after seeing an banner in my FB account.

Over the years I've used it as an advertiser and was quite happy with its CTR and the cost per click, and especially I think the reach is fantastic because I can target so many things. However somewhat I was not convinced on the conversion rate. With the CTR and conversion improving I can see FB is finally becoming a viable ad product instead of some gimmick.

Enjoying this article?

Get more just like this, delivered to your inbox.

Keep up to date with the latest analysis, inspiration and learning from the Econsultancy blog with our free Daily Pulse newsletter. Each weekday, you
ll receive a hand-picked digest of the latest and greatest articles, as well as snippets of new market data, best practice guides and trends research.